ChainLink is showing bearish signs as its price dips again, with some investors looking to either take profits or offset losses. After a bullish September that saw the asset rise from $9 to $13 during the last three weeks, ChainLink experienced a sharp decline to around $10 at the start of October.
Despite attempts to recover over the past two weeks, on-chain indicators suggest a potential downturn. According to data from IntoTheBlock, the number of daily active addresses (DAA) in profit increased significantly from 155 to 600 in the past week as ChainLink’s price exceeded the $12 mark. This surge indicates that some investors are keen to realize profits amid heightened price volatility.
Conversely, the number of DAAs in loss also rose, climbing from 222 on October 20 to 263 on October 22. This uptick may suggest that long-term holders are attempting to mitigate their losses, indicating a potential selloff despite the bullish momentum.
It’s crucial to note that broader market trends could influence ChainLink’s trajectory. If the overall market experiences bullish momentum, it may uplift ChainLink as well.
Data from IntoTheBlock reveals that whale transactions involving at least $100,000 worth of LINK surged from 54 on October 19 to 134 by October 22, totaling $361 million in transactions over the past week. Such increases in trading volume and whale activity often lead to heightened price volatility.
At the time of writing, ChainLink has declined by 1.75% in the past 24 hours, trading at $11.78, with a market cap of $7.38 billion and a daily trading volume of $320 million. The combination of rising trading volume and significant whale transactions suggests continued volatility in the asset’s price movements.
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